Asia Morning Briefing: Coinbase Premium, Not Bank of Japan Rates, Might be the Metric to Watch for BTC
Bitcoin BTC is trading at $109.7K as the Wednesday trading day begins in Asia,
While the world's largest digital asset is trading flat in the early hours of the session, shows that it's up 4% on the week.
isn't doing that much to move the market, even though a low interest rate policy is usually what drives risk-on sentiment and positively impacts BTC prices.
One metric to watch instead is the 'Coinbase Premium'. Tracked by CryptoQuant, it measures the price difference between BTC on Coinbase Pro (USD) and Binance (USDT), demonstrating the dollar demand for bitcoin (as opposed to crypto-native demand).
"The Coinbase Premium is gradually rising, indicating that buying pressure from U.S. investors is supporting the trend," . "Additionally, whale buying activity is being observed incrementally."
Part of this movement would include BTC ETF inflow, which has hit $386.27 million so far this week, .
That being said, some market observers are concerned that a staked ether exchange-traded fund (ETF), , could put a damper on institutional BTC interest.
Youwei Yang, chief economist at BIT Mining, says that an ETF that gives investors access to ETH yield from staking would be something that BTC ETFs can't match, as they just give exposure to price appreciation.
"This has created a lot of buzz, especially considering how much of bitcoin’s rally was fueled by ETF hype," Yang said. "And let’s be honest: while there’s speculation around Solana or Litecoin ETFs, Ether is still the only other crypto asset with a real existence in U.S. spot ETF. That makes it a go-to option for institutions waiting and watching on the sidelines, ready to move when the timing feels right."
But for now, it's still a waiting game. At least until the BoJ's move is official, as the usual crypto-natives like Arthur Hayes are
DEX Volume Has Nearly Doubled in Past Year
Centralized Exchanges (CEXs) have always had their eyes on Decentralized Exchanges (DEXs) since the concept took off in 2018 with the advent of modern Automated Market Maker (AMM) engines – the technology at the center of the product category.
But as the year continues, and maybe there'll be a renewed interest in DEXs, considering the massive jump in volume on the platforms in the last year.
According to data from Messari, in the last year, trading volume on DEXs has jumped from around 6% of all volume to 12%. In May, that number got closer to 25% as up-and-coming , including .
But are DEXs and CEX's competitors? No, says OKX President Hong Fang.
in the run-up to Consensus Hong Kong, Fang said that the two are complementary.
"The crypto-native audience will want to be able to use CEX for reliability and DEX for catching innovations," she said at the time. "Such supply-demand dynamics will drive further adoption of DEX to enable innovation while supporting the gradual maturity of the crypto regulatory framework."
News Roundup
Trump’s CFTC Nominee Brian Quintenz Says Congress Key to Boosting Crypto Innovation and Consumer Protection
Brian Quintenz, President Trump's nominee for chairman of the Commodity Futures Trading Commission (CFTC), emphasized at his Senate confirmation hearing that Congress must lead in establishing clear guidelines to boost crypto innovation and consumer protection simultaneously,
Quintenz, who previously served as a CFTC commissioner and later as head of policy at venture capital firm a16z, argued that forthcoming market structure legislation could provide clarity needed for entrepreneurs while maintaining safeguards for consumers.
During his confirmation, senators expressed concerns about vacancies at the CFTC—particularly the absence of Democratic commissioners—but Quintenz declined to commit to advocating Trump to fill these positions, emphasizing presidential discretion. He acknowledged potential resource needs should the CFTC become the primary regulator for digital commodities, advocating a "technology-first approach" to enhance agency efficiency, and defended the role of prediction markets as legitimate tools for hedging and risk management.
Aave is Now on Sony's Soneium
Aave has launched on Soneium, an Ethereum Layer-2 blockchain supported by electronics giant Sony, CoinDesk previously reported. This integration includes exploring real-world applications of Aave's decentralized overcollateralized stablecoin, GHO, across payments, savings, and digital commerce.
Aave's involvement will extend to liquidity incentive campaigns, notably partnering with Astar, a significant blockchain player in Japan’s Web3 scene, with a dedicated 100 million ASTR allocation ($4 million) to boost adoption.
Soneium already hosts a vibrant 7-million user ecosystem featuring prominent platforms like Uniswap v4, Velodrome, Stargate, and Lido, alongside native protocols Kyo Finance and SuperVol. Stani Kulechov, Aave Labs' founder, emphasized Sony’s global trust and Soneium’s consumer-centric approach as key advantages, aligning with Aave’s strategy of expanding accessibility and mainstream reach.
Market Movements
BTC: BTC trades below $110K as exchange reserves drop sharply, signaling strong accumulation amid significant short liquidations.
ETH: Ethereum surged 6.9% to $2,803 amid triple-average trading volume, reflecting strong institutional conviction driven by significant ETF inflows and BlackRock’s sizable ETH accumulation.
Gold: Spot gold neared $3,350 Tuesday, buoyed by cautious optimism over US-China trade talks despite a firmer US dollar.
Nikkei 225: Asia-Pacific markets rose Wednesday amid optimism over "productive" U.S.-China trade talks, with Japan's Nikkei 225 gaining 0.69% at open.
S&P 500: The S&P 500 gained 0.6% Tuesday, approaching record highs above 6,000, buoyed by investor optimism on U.S.-China trade talks and Tesla's rise amid Elon Musk's robotaxi announcements.
